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ARTICLE · 30 OCTOBER 2026

Expanding Beyond Financial Services: Draft Regulations For Federally Regulated Financial Institutions

Gowling WLG
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Canada's Department of Finance has published proposed regulations that would expand the non-financial activities federally regulated financial institutions may pursue, enabling greater flexibility to develop technology capabilities and invest in fintech businesses. The framework introduces revenue and capital limits while removing ministerial approval requirements, fundamentally reshaping how Canadian banks, insurers, and other financial institutions can compete in an increasingly digital marketplace.

CanadaFinance and Banking
Alana Scotchmer
Alana Scotchmer
Melissa Prado
Melissa Prado
Natalia Castro
Natalia Castro
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On October 17, 2026, the Department of Finance published four sets of proposed regulations (the "Draft Regulations") that would set the stage to bring into force long-awaited amendments to the federal financial institutions statutes, first enacted in the Budget Implementation Act, 2018, No. 1 (the "NFA Amendments").

Together, they would expand the non-financial activities ("NFA") that federally regulated financial institutions ("FRFIs") may carry on and invest in, giving FRFIs more flexibility to develop technology, provide related services and invest in fintech businesses (subject to revenue and capital limits and reporting requirements).

The Draft Regulations remain in proposed form and could change. Comments can be submitted before November 16, 2026.

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